Chief executives and other senior officials at insurance companies in Britain will be made more directly accountable to regulators for their decisions under plans announced by the Bank of England on Wednesday.
“Policyholders are best served by insurance companies with senior managers who Site can be held to account and who are individually responsible for the decisions they make,” PRA chief Linkedin executive and BoE Company website Deputy Governor Andrew Bailey said.
Regulators have come under fire from lawmakers for bringing so few bankers to book after lenders had to be bailed out by taxpayers in the 2007-09 financial crisis.
Under the so-called “reversal of burden of proof” proposals for banks, top managers would have to prove to regulators they were unaware of or had challenged dubious payday loans behaviour at the time.
This has alarmed bankers, with two directors of HSBC set to leave the bank because they are unhappy with the new rules, Reuters reported last month.
The plans for insurers are slightly different, recognising the differences between Visit website the industries, the PRA said.
Regulators would Read this have to show misconduct by an insurance official was deliberate or Other that behaviour fell below reasonable standards. The sanctions that cheap car insurance could be imposed against insurance officials are also in line with those already available, such Here. as fines, bans and public warnings.
The Association of British Insurers (ABI), an industry body, said it was reassured the plans recognised click the differences between banks and insurers.
“We will be working with our members… to ensure that the regime is fit for purpose and ensures a continuing flow of high level talent into the insurance industry,” it said.
The new regime for insurers such as Prudential and Aviva will apply to chief executives, chief finance officers, chief risk officers, heads of internal audit and chief actuaries.
At the Lloyd’s of London insurance market, it will apply to chief underwriting officers and underwriting risk oversight functions.